BREAKING: Gas Price Hits $2.18/MMBtu

Nigeria’s petroleum regulator has raised the domestic base price of natural gas to $2.18 per MMBtu, with the new rate set to take effect from April 1, 2026.

The updated price marks a modest increase from the $2.13/MMBtu charged in 2025 for power generation firms, representing a rise of five cents or roughly 2.35 per cent.

The authority explained that the adjustment aligns with provisions of the Petroleum Industry Act, as well as current market conditions and existing gas pricing regulations.

“Taking into cognisance the provisions of the Petroleum Industry Act, market realities, as well as the gazetted Gas Pricing and Domestic Demand Regulations, the NMDPRA hereby establishes the new Domestic Base Price as $2.18/MMBtu,” the regulator stated.

The revised pricing structure covers gas supplied to major sectors, including electricity generation and industrial users.

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Commercial consumers will now pay $2.68/MMBtu, up from $2.63/MMBtu, reflecting a similar incremental adjustment.

The regulator noted that the price review is intended to reflect prevailing market realities while ensuring a stable supply framework and sustaining investor confidence.

As the benchmark minimum price for domestic gas transactions, the base rate plays a key role in shaping supply and pricing across the market.

The increase is expected to impact the power sector, which relies heavily on gas for electricity generation, accounting for over 70 per cent of total output.

The authority added that the revised pricing will serve as a guide for domestic gas supply and pricing, while supporting availability across critical sectors.